South African Government to Fund ArcelorMittal South Africa to Support Key Steel Mills

The South African government will invest 500 million rand ($28 million) in ArcelorMittal South Africa to support critical steel mills, helping to sustain jobs and bolster economic recovery through infrastructure projects.

The South African government has announced plans to provide significant financial support to ArcelorMittal South Africa Ltd., the local subsidiary of the multinational steel entity. This financing, amounting to 500 million rand (approximately $28 million), intends to sustain critical steel mills essential for the national economy. The funds will be used to cover workers’ salaries for a period of six to eight months while also offering interim financing through the Industrial Development Corporation (IDC). Furthermore, this intervention is expected to lead to an increase in the IDC’s ownership stake in ArcelorMittal South Africa from its current level of 8.2%.

Additionally, the government is keen to engage ArcelorMittal South Africa Ltd. in proposals for two steel mills located in Vereeniging and Newcastle. Earlier in 2025, the IDC had extended working capital to ArcelorMittal South Africa to ensure operational continuity. Finalizing an agreement that ensures the continued operation of the long products factories is pivotal to the government’s broader initiatives aimed at revitalizing the economy via extensive infrastructure projects. Notably, sectors like automotive and mining are among the leading contributors to foreign exchange earnings within the nation.

ArcelorMittal S.A., headquartered in Luxembourg, stands as a prominent global steel corporation and is recognized as the second largest metallurgical company worldwide, commanding a 4% share of the global steel market. It operates across 18 nations on four continents, with its products marketed in 160 countries. ArcelorMittal South Africa acts as the local branch, with its headquarters situated in Johannesburg, South Africa.

In summary, the South African government’s financial support for ArcelorMittal South Africa illustrates its commitment to sustaining vital industries that underpin the national economy. The investment not only aids workers but also aims to enhance infrastructure development, strategically benefiting key sectors like automotive and mining. This collaboration is poised to bolster the country’s economic recovery and growth.

Original Source: www.akm.ru